One often-overlooked factor that can impact your operations is pay frequency—how often employees receive their paychecks. Pay frequency not only affects employee satisfaction but also has critical legal implications for employers, as laws regulating pay schedules vary by state. 

For recruiters, especially those working across multiple states, understanding pay frequency and the associated regulations is essential. 

What is pay frequency  

Pay frequency refers to how often employees are paid for their work. Common pay frequencies in the United States include weekly, bi-weekly, semi-monthly, and monthly.  

It’s best that everyone involved in the hiring process knows federal and state pay frequency laws like the back of their hand to avoid legal implications. The choice of pay frequency affects cash flow for businesses, payroll processing complexity, and employee satisfaction. Many workers prefer more frequent pay, and this can be a factor in attracting and retaining talent. 

Employers generally choose from the following pay frequencies: 

Weekly  

Employees are paid once every week, often on Fridays. This is industry standard for all hourly employees as well as some salaried employees. 

• Pros: Employees have quicker access to their earnings. 
• Cons: Payroll processing is more frequent, leading to higher administrative costs. 

Bi-weekly 

Employees receive their pay every two weeks, typically resulting in 26 pay periods per year. This is most commonly used for salaried employees where the payroll is consistent and does not fluctuate. 

• Pros: Balances frequent payment with less payroll processing than weekly pay. 
• Cons: Creates complications where payroll is based on timesheets/hourly labor. 

Semi-monthly

Pay is issued twice a month, often on the 15th and last day of the month, equaling 24 pay periods annually. This is common for salaried employees in professional industries. 

• Pros: Works well for budgeting and aligns with monthly expenses. 
• Cons: Pay dates vary, which can confuse employees, and some months are longer than others, creating gaps between paychecks. 

Monthly

Pay is issued once per month, typically for high-level executives. 

• Pros: Simplifies payroll processing. 
• Cons: Least preferred by employees, as it requires long budgeting periods between paydays. 

State-Specific Pay Frequency Laws 

Like other employment regulations, federal law, through the Fair Labor Standards Act (FLSA), governs minimum wage and overtime, but does not dictate pay frequency. Instead, pay frequency is regulated at the state level, and the laws can vary significantly. 

• There are currently 11 states with regulations for weekly pay: California, Connecticut, Iowa, Massachusetts, Michigan, New Hampshire, Puerto Rico, Rhode Island, Vermont 
• Alabama, Florida and South Carolina don’t have pay frequency law in place 
• While in Florida there are no specific pay frequency requirements, allowing employers to choose their schedules, but they must still comply with other wage payment rules. 
• New York mandates that manual workers must be paid weekly, while clerical and other employees can be paid semi-monthly. 
• In Texas exempt employees may be paid monthly, while non-exempt employees must receive payment at least semi-monthly. 

For recruiters working across multiple states, knowing the intricacies of pay frequency and state-specific payroll laws is more than just a helpful insight; it’s a necessity for placing candidates in roles that fit their needs and ensuring clients remain compliant. 

Some states impose stiff penalties for late payments or for failing to meet specific frequency guidelines. Additionally, how overtime is calculated can depend on the pay period, which adds another layer of complexity.  

For example, in California, where daily overtime is required, employers must calculate overtime on a daily, rather than weekly, basis. This means that employers using a bi-weekly or semi-monthly pay schedule must ensure they account for these overtime rules accurately. 

How can an EOR help? 

Managing payroll across multiple states with different pay frequency laws can be time-consuming and error-prone for businesses. This is where an Employer of Record (EOR) comes in, offering a streamlined solution for payroll compliance and ensuring employees are paid correctly and on time. 

By partnering with an EOR, recruiters can ensure that their clients avoid the risks of non-compliance while focusing on their core responsibilities—attracting and hiring top talent. 

Start your EOR journey today by contacting our team.